Schroders Retirement Benefits Scheme, London, hired Schroders PLC to manage an £800 million ($1 billion) cash-flow-driven investment strategy, a spokesman said.
The CDI allocation is new. The pension fund's objective is to maintain return expectations while providing for both expected and unanticipated liabilities, said Vivien Cockerill, chairwoman of trustees at SRBS, in a news release Wednesday, adding that the £1 billion SRBS is "rapidly maturing."
"We felt that Schroders' CDI solution met these challenges. It enabled SRBS to invest in higher-yielding medium-dated credit assets to help secure the required growth, while also meeting cash flows without significant downside risk," Ms. Cockerill added in the release.
A spokesman declined to comment about whether the pension fund considered other managers.